Vietnam Import/Export Regulatory Update
In order to run commercial import and export activities smoothly, entrepreneurs are advised to take notice of the recent Circular No. 22/2014/TT-BTC on e-customs procedures.
The new Circular, which replaced Circular 196/2012/TT-BTC and took effect on April 4, 2014, accompanied the launching of two custom systems: the VACCS (Vietnam Automated Cargo Clearance System) and the Vietnam Customs Intelligence Information System (VCIS).
One significant change coming out of the new Circular is that declarants are no longer required to print out declaration forms. In case customs agents need to confirm the declared information, they can consult the VACCS. However, it is the declarant’s responsibility to keep hold of all relevant documents in order to provide them to the customs agents in certain necessary situations.
According to this Circular, which applies to e-customs procedures nationwide, before using their digital signatures to carry out e-customs procedures, customs declarants must register their digital signatures at a customs office.
Before making a customs declaration, customs declarants must provide the customs agents information relating to the imported or exported goods in advance.
Additionally, several new principles are required to fill out customs forms. A customs declaration may contain only one invoice and a maximum number of 50 commodities items. In case a consignment consists of more than 50 items, declarants need to fill out multiple forms for their declaration. The Circular also emphasizes the need to fill out different forms for goods imported or exported by different methods .
When making a declaration for the import and export of goods which are tax-free or eligible for tax exemption or reduction, customs declarants must make a detailed list of these items. If the goods are eligible for the application of the transaction value method, declarants are not required to fill in and submit the value declaration if they have declared the value on the import declaration – the system can automatically calculate the dutiable value.
This Circular took effect on April 1, 2014.
Customs for goods outsourced for foreign businesses.
On January 24, 2014, the Ministry of Finance issued Circular No. 13/2014/TT-BTC promulgating the regulations on the procedure of customs for goods outsourced for foreign businesses.
Regarding the content of outsourcing contracts, an outsourcing contract that has a validity period of more than one year can be separated into several addenda for implementation. This Circular narrows the time to implement a contract appendix to one year. Classification of products and implementation of contracts in accordance with the types of products is necessary when the process exceeds one year.
The Circular also gives businesses instructions on handling redundant raw materials, supplies, or equipment:
- Sell in Vietnamese market (in the form of on-the-spot export and import);
- Re-export abroad;
- Transfer for the implementation of other outsourcing contracts in Vietnam;
- Donate in Vietnam;
- Destroy/dismantle in Vietnam;
Temporary export procedures for outsourced products to abroad for recycling and then re-imported to Vietnam must meet the following requirements:
- The outsourced products are temporarily exported for recycling within a maximum of three hundred and sixty five days (365) days after the registration of the import declaration;
- The products have not been produced, outsourced, repaired, or used in Vietnam;
This Circular took effect on January 28, 2014.
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Developing Your Sourcing Strategy for Vietnam
In this issue of Vietnam Briefing Magazine, we outline the various sourcing models available for foreign investors – representative offices, service companies and trading companies – and discuss how to decide which structure best suits the sourcing needs of your business.
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